Crain's Article Michigan Central Station
Crain's Article Michigan Central Station
http://www.crainsdetroit.com/article/20 ... al-station
Ford Motor Co. is in discussions to purchase the dilapidated Michigan Central Station in Detroit's Corktown neighborhood just outside of downtown, Crain's has learned from multiple sources familiar with the negotiations.
The exact status of negotiations is unknown. But two sources familiar with the matter said a deal for the Dearborn-based automaker to redevelop the 500,000-square-foot former train station off of Michigan Avenue owned for decades by the Moroun family could come as soon as next month.
If a deal comes to fruition, it would mark Ford's biggest step back into the city where it was born, three months after announcing that it was going to put more than 200 employees just down Michigan Avenue in The Factory at Corktown building. A redeveloped train station could house more than 1,000 workers, depending on the layout.
A redevelopment of the depot, which has been abandoned and blighted for three decades since Amtrak stopped service in 1988, would be one of the most expensive and complex local undertakings in recent history, development experts familiar with the property have said in recent months.
Michael Samhat, president of the Moroun's Warren-based Crown Enterprises, said there is not a deal imminent to redevelop the train station.
"We're always working to bring an opportunity to the train station," Samhat told Crain's on Monday. "When we do get a serious entity looking at it, those are details we don't share. At this time, we don't have any deal to report."
Samhat said the Morouns continue to meet with different groups interested in the building, which became a symbol of Detroit's post-industrial decline in the 1970s, 1980s and 1990s.
"Last week, we met with an entity — not Ford Motor — on the building," Samhat said Saturday morning. "We're not at a point to name an entity and say we've got a deal."
Matthew Moroun, the son of billionaire transportation mogul Manuel "Matty" Moroun, told Crain's last year that he has broached the idea of Amtrak trains running through the old train depot with Kirk Steudle, director of the Michigan Department of Transportation. The opening night of the annual Detroit Homecoming event, produced by Crain's, was held at the train station last year.
Steudle said he's receptive to the idea and connecting the old train station to the central business district in the same way the QLine streetcar connects the New Center area with downtown.
Last year, Samhat said the Moroun family has spent more than $8 million over the past five years abating the building, constructing a freight elevator in the shaft of the depot's original smokestack and installing 1,100 windows.
A spokeswoman for Ford Land Development Co., Ford's real estate arm, declined comment, as did a corporate spokesman reached Saturday.
One source familiar with Ford's pursuit of the train station said the move is aimed at building a workplace in an urban setting that can attract younger workers to the automaker.
Ford company officials, including Executive Chairman Bill Ford Jr., have said talent attraction was a driving factor in Ford buying The Factory building and embedding a team of employees focused on developing the business strategy for selling electric and autonomous vehicles of the future.
"Our young people love ... living and working in urban areas," Bill Ford Jr. said in January at the Detroit auto show.
Ford Motor Co. is in discussions to purchase the dilapidated Michigan Central Station in Detroit's Corktown neighborhood just outside of downtown, Crain's has learned from multiple sources familiar with the negotiations.
The exact status of negotiations is unknown. But two sources familiar with the matter said a deal for the Dearborn-based automaker to redevelop the 500,000-square-foot former train station off of Michigan Avenue owned for decades by the Moroun family could come as soon as next month.
If a deal comes to fruition, it would mark Ford's biggest step back into the city where it was born, three months after announcing that it was going to put more than 200 employees just down Michigan Avenue in The Factory at Corktown building. A redeveloped train station could house more than 1,000 workers, depending on the layout.
A redevelopment of the depot, which has been abandoned and blighted for three decades since Amtrak stopped service in 1988, would be one of the most expensive and complex local undertakings in recent history, development experts familiar with the property have said in recent months.
Michael Samhat, president of the Moroun's Warren-based Crown Enterprises, said there is not a deal imminent to redevelop the train station.
"We're always working to bring an opportunity to the train station," Samhat told Crain's on Monday. "When we do get a serious entity looking at it, those are details we don't share. At this time, we don't have any deal to report."
Samhat said the Morouns continue to meet with different groups interested in the building, which became a symbol of Detroit's post-industrial decline in the 1970s, 1980s and 1990s.
"Last week, we met with an entity — not Ford Motor — on the building," Samhat said Saturday morning. "We're not at a point to name an entity and say we've got a deal."
Matthew Moroun, the son of billionaire transportation mogul Manuel "Matty" Moroun, told Crain's last year that he has broached the idea of Amtrak trains running through the old train depot with Kirk Steudle, director of the Michigan Department of Transportation. The opening night of the annual Detroit Homecoming event, produced by Crain's, was held at the train station last year.
Steudle said he's receptive to the idea and connecting the old train station to the central business district in the same way the QLine streetcar connects the New Center area with downtown.
Last year, Samhat said the Moroun family has spent more than $8 million over the past five years abating the building, constructing a freight elevator in the shaft of the depot's original smokestack and installing 1,100 windows.
A spokeswoman for Ford Land Development Co., Ford's real estate arm, declined comment, as did a corporate spokesman reached Saturday.
One source familiar with Ford's pursuit of the train station said the move is aimed at building a workplace in an urban setting that can attract younger workers to the automaker.
Ford company officials, including Executive Chairman Bill Ford Jr., have said talent attraction was a driving factor in Ford buying The Factory building and embedding a team of employees focused on developing the business strategy for selling electric and autonomous vehicles of the future.
"Our young people love ... living and working in urban areas," Bill Ford Jr. said in January at the Detroit auto show.
Re: Crain's Article Michigan Central Station
This sounds like it has the most potential, out of all the previous ideas. It's incredible that the building has been looking for long-term stability since 1956, when New York Central first offered it for sale.
Re: Crain's Article Michigan Central Station
Not much going on in that part of town. Most afternoons you could shoot a cannon down Michigan Ave and not hit anyone. For years Detroit has concentrated all development in the downtown Woodward corridor, around the stadiums, Compuware, and to a lesser extent the new Center area.
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Re: Crain's Article Michigan Central Station
The MC station isn't downtown, that's the problem.
It was built there so that the passenger trains transiting the Canada Southern could use the new Detroit River Tunnels without needing to make a backup move.
Which is what they had to do from the old station on the riverfront for a couple of years.
It was built there so that the passenger trains transiting the Canada Southern could use the new Detroit River Tunnels without needing to make a backup move.
Which is what they had to do from the old station on the riverfront for a couple of years.
Re: Crain's Article Michigan Central Station
Actually, there's been quite a bit going on in Corktown in the past few years. Ford is moving 220 employees from Dearborn who work on its driverless program. https://www.freep.com/story/money/cars/ ... 953367001/
The Checker Cab building on Trumbull is being turned into 52 lofts.https://detroit.curbed.com/2017/5/9/155 ... t-corktown
New restaurants opening.https://www.metrotimes.com/table-and-ba ... n-corktown
Even an award winning distillery.https://www.metrotimes.com/detroit/two- ... id=2458371
The Checker Cab building on Trumbull is being turned into 52 lofts.https://detroit.curbed.com/2017/5/9/155 ... t-corktown
New restaurants opening.https://www.metrotimes.com/table-and-ba ... n-corktown
Even an award winning distillery.https://www.metrotimes.com/detroit/two- ... id=2458371
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Re: Crain's Article Michigan Central Station
Wbat are the chances of Amtrak service returning to the old station? I remember hearing something along the lines of wanting the A2 commuter trains and Amtrak being based out there again.
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Re: Crain's Article Michigan Central Station
The A2 trains will most likely not happen for a while. Sounds pessimistic, but WALLY kinda fell through a couple years ago.NSSD70ACe wrote:Wbat are the chances of Amtrak service returning to the old station? I remember hearing something along the lines of wanting the A2 commuter trains and Amtrak being based out there again.
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Re: Crain's Article Michigan Central Station
While this is likely true, we are years away from ARB-DET commuter trains, I would like to note that WALLY is a seperate idea than the "Huron Express" (most recent name on paper for the service afaik). WALLY was walled lake to Ann Arbor, while the Michigan line train has never had a great public nickname. It was often just consider the MDOT/ SEMCOG train or project or MiTrain. From what I saw it didn't get a name like "WALLY".MiRailProductions wrote:The A2 trains will most likely not happen for a while. Sounds pessimistic, but WALLY kinda fell through a couple years ago.NSSD70ACe wrote:Wbat are the chances of Amtrak service returning to the old station? I remember hearing something along the lines of wanting the A2 commuter trains and Amtrak being based out there again.
That being said, if Ford puts people from Dearborn at the MC, I could see a push for a commuter train or Q line extension to that location. By no means am I supporting/ not supporting this idea (but I do like public mass transit/ trains), but given how city development goes and how local governments can be it would not surprise me to see mass transit going to the MC if Ford moves in.
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Re: Crain's Article Michigan Central Station
Traditionally, the auto companies have discouraged mass transit.
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Re: Crain's Article Michigan Central Station
Historically, this was true. In the present day in Corktown, there are plenty of new lofts under construction, multiple restaurants opening in the next few months, the redevelopment of the old Tiger Stadium site. Even in others areas of the city, new development is happening in New Center, West Village, Rivertown, University District, Brightmoor. The I-94 Industrial Park is well underway. Perhaps with rail service from Conrail on the Beltline?hoborich wrote:Not much going on in that part of town. Most afternoons you could shoot a cannon down Michigan Ave and not hit anyone. For years Detroit has concentrated all development in the downtown Woodward corridor, around the stadiums, Compuware, and to a lesser extent the new Center area.
Wally was Washtenaw to Livingston. Tracks in Walled Lake have been gone for 6 years.Ypsi wrote: WALLY was walled lake to Ann Arbor, while the Michigan line train has never had a great public nickname.
Re: Crain's Article Michigan Central Station
I do know one thing though. It will take a lot of time & money to restore the station. When they moved us out of the depot in 1985 it needed new wiring, heating, and water lines so I would think after 30+ years it's probably only worse. Hard to believe Ford would need all 13 floors in addition to the basement levels.
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Re: Crain's Article Michigan Central Station
Ford did not "need" the entire Ren Cen either. There is a part of Ford that is a real estate business.Fred wrote:I do know one thing though. It will take a lot of time & money to restore the station. When they moved us out of the depot in 1985 it needed new wiring, heating, and water lines so I would think after 30+ years it's probably only worse. Hard to believe Ford would need all 13 floors in addition to the basement levels.
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Re: Crain's Article Michigan Central Station
Good thing that all the wiring and stuff made of metal won’t have to be removed to be replaced - 20+ years of vandals did the work for them!Fred wrote:I do know one thing though. It will take a lot of time & money to restore the station. When they moved us out of the depot in 1985 it needed new wiring, heating, and water lines so I would think after 30+ years it's probably only worse. Hard to believe Ford would need all 13 floors in addition to the basement levels.
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Re: Crain's Article Michigan Central Station
You are right, but I don't think of Ford when I see that GM logo at the top of the building.Standard Railfan wrote:Ford did not "need" the entire Ren Cen either. There is a part of Ford that is a real estate business.
Is the Michigan Central Station a protected landmark or could it be razed to build something useful in this century?
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Re: Crain's Article Michigan Central Station
Yes.justalurker66 wrote:Is the Michigan Central Station a protected landmark...
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Re: Crain's Article Michigan Central Station
Michigan Central Station is not a "protected" landmark. https://www.nps.gov/nr/faq.htm#restrictions
"Under Federal Law, the listing of a property in the National Register places no restrictions on what a non-federal owner may do with their property up to and including destruction, unless the property is involved in a project that receives Federal assistance"
Some cities like New York do have restrictions on demolishing landmarks, but those are local laws.
"Under Federal Law, the listing of a property in the National Register places no restrictions on what a non-federal owner may do with their property up to and including destruction, unless the property is involved in a project that receives Federal assistance"
Some cities like New York do have restrictions on demolishing landmarks, but those are local laws.
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Re: Crain's Article Michigan Central Station
In addition to the Glass House and the Salt & Pepper Shakers, the two main Ford office complexes, there are a lot of random Ford offices in what appears to be strip mall-type office parks on the Dearborn side of the Detroit metroplex. Perhaps this is an effort to unload a few of those and consolidate properties as well.
I have been in a few of these random offices and they're dreadful. Nobody has a window and there are pictures of the 1997 Mercury Mystique on the wall. I'd consider MCS a big upgrade.
I have been in a few of these random offices and they're dreadful. Nobody has a window and there are pictures of the 1997 Mercury Mystique on the wall. I'd consider MCS a big upgrade.
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Re: Crain's Article Michigan Central Station
Looks like yet another speculative rumor being fueled by the media -- which will end up going nowhere. Similar to the McLouth Steel property in Riverview.
Honestly, I can't see anyone renovating it; it's in such bad shape, I think it would cost way more to renovate it than it would to tear it down and start over.
It's nice to dream about someone moving in, though.
Honestly, I can't see anyone renovating it; it's in such bad shape, I think it would cost way more to renovate it than it would to tear it down and start over.
It's nice to dream about someone moving in, though.
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Re: Crain's Article Michigan Central Station
The steel property has environmental issues. That will eventually be dealt with and you can guess who will foot the bill.
Bankruptcy is bad practice for individuals but yet an accepted business practice. Go figure.
The MC Depot may not look like much, but what matters is the structure. The structure itself(excluding the concourses) doesn't seem to have major issues. That doesn't mean there aren't any issues.
As for a potential renovation several things are going for it. The structure was built at one time as one building. The building was not fully completed. This would make it easier to gut what is left. That also makes it easier for architects/engineers because they can make plans for one floor as the typical plan for other floors. For comparison, the Hudson's building was actually multiple building and additions which would have been a nightmare to rehabilitate.
But it still has the one major flaw, it's located outside of the Downtown/New Center areas.
It would take someone like Ford to make it work. But Ford is a publicly owned company and must make sure shareholder value is considered.
Bankruptcy is bad practice for individuals but yet an accepted business practice. Go figure.
The MC Depot may not look like much, but what matters is the structure. The structure itself(excluding the concourses) doesn't seem to have major issues. That doesn't mean there aren't any issues.
As for a potential renovation several things are going for it. The structure was built at one time as one building. The building was not fully completed. This would make it easier to gut what is left. That also makes it easier for architects/engineers because they can make plans for one floor as the typical plan for other floors. For comparison, the Hudson's building was actually multiple building and additions which would have been a nightmare to rehabilitate.
But it still has the one major flaw, it's located outside of the Downtown/New Center areas.
It would take someone like Ford to make it work. But Ford is a publicly owned company and must make sure shareholder value is considered.